Carnaby Resources is set to acquire the high-grade Trekelano copper-gold deposit in Queensland, which includes a binding tolling and offtake agreement with Glencore.
The company has entered a binding asset sale agreement with Chinova Resources Osborne to acquire Trekelano, which boasts a JORC inferred mineral resource estimate (MRE) of 5.2 million tonnes (Mt) at 1.6 per cent copper equivalent (CuEq) for 85,000 tonnes (t).
Located within 20km of Carnaby’s Greater Duchess deposits, Trekelano is expected to significantly bolster production capacity.
“The Trekelano acquisition is a rare opportunity to bolt on high-grade critical mass to the Greater Duchess copper-gold project, resulting in a pro-forma mineral resources increase of 27 per cent to 400,300 CuEq tonnes at 1.5 per cent CuEq,” Carnaby managing director Rob Watkins said.
“We have also secured a start-up processing solution through our partnership with Glencore which involves an equity investment of $3.4 million.
“High-quality institutional investor support of the raise to facilitate the acquisition, pre-feasibility study and ongoing exploration is a further endorsement of the company’s strategy.”
Key highlights include impressive drill results beneath the inheritance open pit, including 93m at 5.2 per cent copper and 1.2 grams per tonne (g/t) gold, which were historically un-mined due to lease constraints.
The acquisition is expected to increase Greater Duchess’ annual production target to 20,000–25,000t CuEq per annum.
In a major milestone, Carnaby has secured a binding tolling and offtake term sheet with Glencore for 100 per cent of the fresh sulphide ore and concentrate from Greater Duchess.
This partnership provides a startup processing solution while retaining the flexibility to build an independent concentrator in the future.
Carnaby has also received firm commitments for a $17 million two-tranche placement at $0.31 per share, representing a 13.9 per cent discount to the last closing price.
“We continue to explore and look forward to continued success as we progress the Greater Duchess project towards development,” Watkins said.
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